Hi Sir/Madam,
With regard to RCM applicability, is Service provider (or) receiver liable to register to discharge the liability created u/s 68(2) of Finance Act, 1994 even if the taxable turnover does not cross 9L during the previous year ?, If yes, please give the legal reference (or) Notification details.
Thank you,
Aditya Vinay Ram
Service Receiver Must Register Under Reverse Charge Mechanism, Pay Tax from First Invoice; Exemption Doesn't Apply. A discussion on the reverse charge mechanism (RCM) under the Finance Act, 1994, involves a query about whether a service provider or receiver must register to discharge liability if the taxable turnover is below nine lakh rupees. Responses clarify that under RCM, the service receiver must register and pay service tax from the first invoice received, as the ten lakh rupee exemption does not apply to them. The service provider can claim an exemption under Notification No. 33/2012-ST until their taxable turnover reaches nine lakh rupees. (AI Summary)
TaxTMI 
TaxTMI 
